IFR Forms Strategic Alliance with Oil Field Service Leader SIMMONS EDECO
CALGARY, Alberta, Jan. 31, 2020 (GLOBE NEWSWIRE) -- International Frontier Resources Corporation (“IFR” or the “Company”) (TSX‐V: IFR) (OTCQB:
IFRTF), today announced it has signed a two year Cooperation Agreement with leading oilfield service provider SIMMONS EDECO (“SIMMONS”).
Through this strategic alliance, IFR and SIMMONS will work together to pursue oil and gas opportunities in the Mexican market primarily focused on upstream oil and gas, as well as midstream and service contract opportunities.
“We are very proud and excited to be working in collaboration with SIMMONS, a leading driller in the Mexican oil and gas services sector,” stated Tony Kinnon Chairman of IFR. “We are especially pleased with SIMMONS’ confidence in the IFR and Tonalli team and our business plan based on a strategy to bring technology and capital, combined with local expertise, to Mexico to continue building a portfolio of cash flowing energy assets.”
“SIMMONS is excited to work together with a partner such as IFR/Tonalli to pursue opportunities in Mexico,” said Niels Versfeld CEO of SIMMONS. “This is a concrete example of our commitment to provide innovative solutions through partnerships that create value for customers, the communities where we operate and shareholders.”
As part of the Cooperation Agreement, SIMMONS may provide investment capital, drilling rigs and oil field services to new joint opportunities. Specifically, within the Cooperation Agreement SIMMONS has agreed that it may provide:
- Access to Simmons drilling services which includes a fleet of fully equipped rigs, as well as other services already operating in Mexico with planned expansions.
- Simmons would take economic risk in exchange for providing these services.
- Capital contributions, ideally between $2-$5 million, towards acquisition and development of assets in exchange for beneficial rights from the asset.
- Support in the negotiation and execution of contracts to secure assets and implementation of projects.
- Secure operational bases and local staff based in Villahermosa and Poza Rica, Mexico.
As part of the Cooperation Agreement, IFR agrees that it may provide: